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MNK.US
id: 773
Mallinckrodt (MNK) Financial Misrepresentation Case
D. New Jersey
Court3:23-cv-03662
Case number06/17/2022
Class period Start06/14/2023
Class period End09/05/2023
Lead Plaintiff motion deadline- Mallinckrodt failed to pay interest payments on bonds and disclosed that may need to file for bankruptcy.
- $MNK share price fell 30%+
- Investors suspect Mallinckrodt & its Leaders of misleading & financial misrepresentation.
On June 15, 2023, Mallinckrodt (MNK) disclosed that it had determined not to make interest payments on two bonds due that day and may need to file for bankruptcy.
On this news, the $MNK share price fell 30.95%.
- On June 16, 2023, Mallinckrodt disclosed in an SEC filing that the Company and the Trust had agreed to extend the deadline for the Company’s $200 million payment to the Trust for the Opioid Settlement from June 16, 2023, to June 23, 2023, while reiterating that the Company may need to file for bankruptcy.
- On June 23, 2023, Mallinckrodt disclosed in an SEC filing that the Company and the Trust had again agreed to extend the deadline for the Company’s $200 million payment to the Trust from June 23, 2023, to June 30, 2023, while reiterating that the Company may still need to file for bankruptcy.
Earlier, on June 2, 2023, The Wall Street Journal reported that Mallinckrodt was again exploring bankruptcy as its next $200 million payment to the Trust for the Opioid Settlement came due.
On this news, $MNK share price fell 40%
Going back, in October 2020, Mallinckrodt filed for Chapter 11 bankruptcy protection while agreeing to settle its alleged role in the U.S. national opioid crisis for approximately $1.7 billion.
- As part of its Chapter 11 exit plan, Mallinckrodt agreed to make nine payments over eight years to an opioid-victims compensation trust for the Opioid Settlement.
- The Company made its first payment of $450 million to the Trust as it emerged from Chapter 11 bankruptcy protection in June 2022.
- The Company’s next payment of $200 million was due to the Trust in June 2023.
Despite its ongoing financial obligations to the Trust for the Opioid Settlement, since emerging from Chapter 11 bankruptcy protection, Mallinckrodt has repeatedly assured investors of the Company’s financial strength, including purported enhancements to its liquidity and balance sheet, as well as its overall prospects for continued financial stability and near- and long-term success.
Taking all facts into account, Investors have reasons to suspect Mallinckrodt & its Leaders of misleading and financial misrepresentation.
Case Status
Motion to dismiss denied
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management,
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
06/15/2023
Filing date
07/05/2023
Lead Plaintiff Deadline
09/05/2023
Judge
Hon. Zahid N. Quraishi